Stablecoin legislation advanced on the Senate floor Monday in an early win for the crypto industry, but the bill is expected to face a lengthy amendment process that will likely push a final vote beyond Congress’ Memorial Day break.
The Senate voted 66-32 on Monday night to move forward with consideration of the GENIUS Act, which would create a regulatory framework for payment stablecoins.
The vote marked a key reversal, bringing on board a group of 16 Democrats who earlier this month had joined the rest of their caucus in blocking the legislation.
However, the bill’s path forward looks slow-going, as Senate Majority Leader John Thune (R-S.D.) plans to allow for floor amendments, which could drag out the process and leave the legislation vulnerable to losing momentum.
Thune has repeatedly underscored in recent weeks that the bill is not yet final and can still be amended from the floor as Democrats have pushed for changes.
“If Democrats were interested in further changes as they claim, they would have had the chance to make those changes on the floor,” Thune said in early May as he teed up a procedural vote on the GENIUS Act that ultimately failed.
“All they had to do was vote for cloture,” he continued. “Not every bill that comes to the floor is a final bill. Now, that might be how it worked when they were in control, but Republicans are doing it differently.”
Several Democrats, a handful of whom voted the GENIUS Act out of the Senate Banking Committee, pulled their support for the bill after Thune moved to expedite a floor vote. They accused Republicans of cutting negotiations short, emphasizing that they still had concerns with the legislation and could not vote for it as is.
After two weeks of negotiations, the two sides reached an agreement on updated language, with crypto-friendly Democrats touting “major victories” and Thune teeing up a second vote.
Even as more than a dozen Democrats voted to move forward with the bill, several indicated Monday that they still have reservations.
Sen. Ruben Gallego (D-Ariz.), the top Democrat on the Senate Banking subcommittee on digital assets, said in a statement ahead of the vote that they are “headed in a direction” that addresses Democrats’ concerns.
“With this vote, I look forward to continuing to work with my colleagues to achieve a final bill that protects consumers and ensures America remains a leader in digital asset innovation,” he added.
Sen. Angela Alsobrooks (D-Md.), who has been a lead negotiator for Democrats, also acknowledged that the latest iteration of the legislation “does not include everything I would have liked,” calling it “an important first step in protecting consumers and innovation.”
“I fought hard to ensure that this bill provided protections for consumers, and I’m glad my efforts were reflected in the bill today,” she said in a statement Monday. “Today’s vote is an acknowledgment of our progress.”
Sen. Lisa Blunt Rochester (D-Del.) said Tuesday that she voted to advance the bill “with the hope that we could make more progress toward improving the bill.”
“While good-faith bipartisan negotiations addressed some of my serious concerns, it does not include all of the necessary changes to protect consumers, protect the stability of the financial system, and prevent fraud and criminal enterprises from using stablecoins,” she said in a statement. “I also believe this legislation still falls short of addressing the clear and obvious potential for corruption and grift by the President and his family.”
“Make no mistake: my vote yesterday represents my willingness to continue negotiating with my Republican colleagues and I’m hopeful that we can engage in a robust floor amendment process,” she added.
Gallego told The Hill on Tuesday they are still trying to address the concerns of individual members to see if they can secure more support for the bill.
A key point of concern for some Democrats has been President Trump and his family’s growing crypto portfolio.
Trump and his sons’ crypto venture, World Liberty Financial, recently launched a stablecoin that was used to complete a $2 billion deal between an Emirati firm and Binance, a crypto exchange that has faced scrutiny from U.S. officials.
The president is also set to attend a private dinner with the top investors in his meme coin on Thursday.
Both the stablecoin deal and the meme coin dinner have prompted concerns from Democrats that Trump is financially benefiting from his office and expanding the potential for foreign influence in the government.
As the amendment process moves forward, it seems unlikely the GENIUS Act will make it across the finish line in the Senate before lawmakers head out of town for a weeklong Memorial Day recess.
Sen. Cynthia Lummis (R-Wyo.) told reporters Monday that she expects a “robust amendment process,” adding that she’s unsure whether senators will finish up consideration of the bill this week.
Thune also said he does not expect to reach an agreement to fast-track consideration of the legislation, according to Axios.
However, Sen. Bill Hagerty (R-Tenn.), who introduced the GENIUS Act, appeared more optimistic about the bill’s timeline, suggesting it could potentially get across the finish line this week.
“I think we have broad agreement from a policy standpoint between Democrats and Republicans,” Hagerty told Fox Business’ “Varney & Co” on Tuesday. “We had a good evening last night, and I think there are actually a number of other folks that aren’t on the bill just yet that will become supportive of it. So, I feel very good about where we’re going.”
“The momentum is very positive right now,” he continued. “All the feedback I’ve had since last night has been extremely positive. So, we’re going to be working at pace this week—we might even get it done this week—that would be great if we could.”
